(Updates with formal statement, adds deposit rate rise)
DOHA, March 16 Qatar's central bank said on
Thursday that it raised its overnight lending rate by 25 basis
points to 5.0 percent after the U.S. Federal Reserve tightened
policy by a similar margin.
The central bank also increased its overnight deposit rate
by 25 bps to 1.25 percent.
However, the central bank reduced banks' reserve requirement
- the amount of money they must hold back from lending as
reserves - by 25 bps to 4.5 percent.
The reserve requirement cut followed complaints by
commercial banks about tight liquidity in the money market,
which has driven short-term market rates up sharply in the past
18 months. The reserve requirement was last changed in April
(Reporting by Tom Finn; Writing by Andrew Torchia; Editing by